Minutes of the Meetings of the Finance Committee of the Internet Society

A meeting of the Finance Committee of the Internet Society (ISOC) was held on Tuesday, March 5, 2012 at 13:00 UTC. In attendance were Eva Frolich, Chair of the Finance Committee, Bert Wijnen and Jason Livingood as members of the Finance Committee.

Also in attendance were Lynn St.Amour, ISOC’s President and Chief Executive Officer, Greg Kapfer, Chief Financial Officer and Sandra Spector, Finance Director.

Call to Order

Eva called the meeting to order.

Review of 2011 Unaudited Financial Reports

A report was supplied to the Committee on February 27 for Committee review of the Society’s 2011 financials now ready for independent audit. Greg solicited comments from the Committee on the unaudited 2011 Financial Details. Discussion ensued about the responsibility of the Financial Committee in this matter, since the accuracy of the financial statements now becomes the responsibility of the Audit Committee and the Independent Auditors (Grant Thornton). Greg stated that the role of the external auditors and Audit Committee was to ensure its accuracy. Lynn noted that this is the culmination of the Finance Committee’s role in monitoring and understanding periodic reports for the current year (2011 in this case).

Greg walked through 2011 Statement of Activities and Balance Sheet. Eva asked for a better understanding of the steps being taken to reach the goal for individual membership dues, given the 2012 budget increase. Lynn explained that in 2012 with increased membership staff, database clean up and targeting specific communities would be the focus in order to grow membership revenue. All revenue goals are stretch goals, but two months into the year, we are striving to attain each goal.

Eva requested more programming based financial reporting. Greg pointed to Deployment Operational Hub and Internet Leadership supplemental reporting provided to the Committee. The Committee stated they would like to see this type of reporting going forward. Lynn concurred that this would be included in future reports to the Finance Committee and Board of Trustees.

Strategic Operating Reserve – Discussion regarding adequacy of current reserve policy

The Finance Committee discussed the status of the review of ISOC’s Strategic Reserve. Bert inquired about response from IAOC regarding reserve needs. Lynn stated that she had made a presentation to the IAOC on reserve calculations but had not received feedback. Lynn also stated that she would follow up with Ray Pelletier on his analysis of current IETF commitments.

Bert inquired as to the goal of the completion of the reserve review. Greg and Bert agreed to compile a summary message to ISOC’s Trustees to solicit input.

Investment Policy for proposed Endowment Fund

The Finance Committee discussed the timing of approval of the endowment fund investment policy. Greg stated that in two weeks he would provide a draft to the Finance Committee of the policy. The Committee discussed the need for the full Board to review the policy. Jason stated that as the endowment was a new program, good practice would dictate that the Board review and approve the program and surrounding policies. Lynn stated that two honorary endowment co-chairs had been identified and two high profile endowment co-chairs were being sought. Once the co-chairs were identified, an announcement of the endowment would take place. Lynn hoped to make this announcement at the April Global INET. Jason believed the timeline for this announcement was too aggressive. Bert asked Lynn and Greg to provide a timeline for the review and approval of the investment policy in order to meet the April deadline.

Future Meeting Dates and Times

The Committee reviewed the next dates of the Finance Committee meetings in 2012: May 7th (8 am Eastern US time), and August 3rd in Vancouver in the morning (TBD)

AOB

Eva called for any other business. The Finance Committee agreed upon publishing approved Finance Committee minutes on the ISOC website.

Adjournment

With no other business, the meeting was adjourned at 14:00 UTC.